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Employee Benefit Plans (Tables) - Defined Benefit Pension Plans
 12 Months Ended
Dec. 31, 2018
Expected Benefit Payments

We expect to contribute approximately $1.5 million to all of our defined benefit pension plans during 2019.  Benefit payments to all plan participants out of plan assets are expected to be the equivalent of:

 

Years ending December 31,

 

Amount

 

 

 

(In thousands)

 

2019

 

$

3,584

 

2020

 

 

3,596

 

2021

 

 

3,627

 

2022

 

 

3,638

 

2023

 

 

3,604

 

Next 5 years

 

 

16,885

 
Funded Status of Defined Benefit Plans

The funded status of our defined benefit pension plans is presented in the table below.

 

 

 

December 31,

 

 

 

2017

 

 

2018

 

 

 

(In thousands)

 

Change in projected benefit obligations (PBO):

 

 

 

 

 

 

 

 

Benefit obligations at beginning of the year

 

$

54,261

 

 

$

53,978

 

Interest cost

 

 

2,072

 

 

 

1,808

 

Participant contributions

 

 

5

 

 

 

5

 

Actuarial losses

 

 

596

 

 

 

(2,511

)

Settlement gain

 

 

(315

)

 

 

-

 

Change in currency exchange rates

 

 

908

 

 

 

(545

)

Benefits paid

 

 

(3,549

)

 

 

(3,486

)

Benefit obligations at end of the year

 

 

53,978

 

 

 

49,249

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of the year

 

 

42,268

 

 

 

44,222

 

Actual return on plan assets

 

 

3,726

 

 

 

(2,237

)

Employer contributions

 

 

1,006

 

 

 

2,792

 

Participant contributions

 

 

5

 

 

 

5

 

Change in currency exchange rates

 

 

766

 

 

 

(670

)

Benefits paid

 

 

(3,549

)

 

 

(3,486

)

Fair value of plan assets at end of year

 

 

44,222

 

 

 

40,626

 

Funded status

 

$

(9,756

)

 

$

(8,623

)

 

 

 

 

 

 

 

 

 

Amounts recognized in the balance sheet:

 

 

 

 

 

 

 

 

Noncurrent pension asset

 

$

2,593

 

 

$

1,898

 

Accrued pension costs:

 

 

 

 

 

 

 

 

Current

 

 

(155

)

 

 

(132

)

Noncurrent

 

 

(12,194

)

 

 

(10,389

)

Total

 

$

(9,756

)

 

$

(8,623

)

 

 

 

 

 

 

 

 

 

Accumulated other comprehensive loss - actuarial losses, net

 

$

30,435

 

 

$

31,601

 

Total

 

$

20,679

 

 

$

22,978

 

Accumulated benefit obligations (ABO)

 

$

53,978

 

 

$

49,249

 
Changes in Other Comprehensive Income

The amounts shown in the table above for actuarial losses (gains) at December 31, 2017 and 2018 have not been recognized as components of our periodic defined benefit pension cost as of those dates.  These amounts will be recognized as components of our periodic defined benefit cost in future years.  These amounts, net of deferred income taxes, are recognized in our accumulated other comprehensive income (loss) at December 31, 2017 and 2018.  We expect that $1.6 million of the unrecognized actuarial losses will be recognized as a component of our periodic defined benefit pension cost in 2019.

The table below details the changes in other comprehensive income during 2016, 2017 and 2018.  

 

 

 

Years ended December 31,

 

 

 

2016

 

 

2017

 

 

2018

 

 

 

(In thousands)

 

Changes in plan assets and benefit obligations

    recognized in other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial gain (loss) arising during the year

 

$

122

 

 

$

498

 

 

$

(2,709)

 

Amortization of unrecognized net actuarial loss

 

 

1,474

 

 

 

1,704

 

 

 

1,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,596

 

 

$

2,202

 

 

$

(772)

 
Components of Net Periodic Defined Benefit Cost (Income)

The components of our net periodic defined benefit pension cost are presented in the table below.  The amount shown below for the amortization of unrecognized actuarial losses in 2016, 2017 and 2018, net of deferred income taxes, was recognized as a component of our accumulated other comprehensive income (loss) at December 31, 2015, 2016 and 2017, respectively.  

 

 

 

Years ended December 31,

 

 

 

2016

 

 

2017

 

 

2018

 

 

 

(In thousands)

 

Net periodic pension cost:

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost on PBO

 

$

2,302

 

 

$

2,072

 

 

$

1,808

 

Expected return on plan assets

 

 

(2,911

)

 

 

(2,770

)

 

 

(3,043

)

Recognized actuarial losses

 

 

1,474

 

 

 

1,704

 

 

 

1,937

 

Settlement cost

 

 

-

 

 

 

87

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

865

 

 

$

1,093

 

 

$

702

 
Information Concerning Defined Benefit Pension Plans (Including Certain Plans for Which ABO Exceeds Fair Value of Plan Assets)

Certain information concerning our defined benefit pension plans (including information concerning certain plans for which ABO exceeds the fair value of plan assets as of the indicated date) is presented in the table below.

 

 

 

December 31,

 

 

 

2017

 

 

2018

 

 

 

(In thousands)

 

PBO at end of the year

 

 

 

 

 

 

 

 

U.S. plan

 

$

44,709

 

 

$

40,643

 

U.K. plan

 

 

9,269

 

 

 

8,606

 

 

 

 

 

 

 

 

 

 

Total

 

$

53,978

 

 

$

49,249

 

Fair value of plan assets at end of the year

 

 

 

 

 

 

 

 

U.S. plan

 

$

32,360

 

 

$

30,122

 

U.K. plan

 

 

11,862

 

 

 

10,504

 

 

 

 

 

 

 

 

 

 

Total

 

$

44,222

 

 

$

40,626

 

Plans for which the ABO exceeds plan assets (only

our U.S. plan):

 

 

 

 

 

 

 

 

PBO

 

$

44,709

 

 

$

40,643

 

ABO

 

 

44,709

 

 

 

40,643

 

Fair value of plan assets

 

 

32,360

 

 

 

30,122

 
Summary of Assumptions Used to Determine Net Benefit Obligation

The weighted-average rate assumptions used in determining the net periodic pension cost for 2016, 2017 and 2018 are presented in the table below.  Such weighted-average discount rates were determined using the projected benefit obligations as of the beginning of each year and the weighted-average long-term return on plan assets was determined using the fair value of plan assets as of the beginning of each year.

 

 

 

Years ended December 31,

 

Rate

 

2016

 

 

2017

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.0

%

 

 

3.7

%

 

 

3.4

%

Long-term rate of return on plan assets

 

 

7.0

%

 

 

6.9

%

 

 

7.2

%

 
Aggregate Fair Value of CMRT Pension Plan Assets by Fair Value Level

The CMRT unit value is determined semi-monthly, and prior to the 2018 restructuring, the plans had the ability to redeem all or any portion of their investment in the CMRT at any time based on the most recent semi-monthly valuation.  However, the plans do not have the right to individual assets held by the CMRT and the CMRT has the sole discretion in determining how to meet any redemption request.  For purposes of our plan asset disclosure, we consider the investment in the CMRT at December 31, 2017 as a Level 2 input because (i) the CMRT value is established semi-monthly and the plans have the right to redeem their investment in the CMRT, in part or in whole, at any time based on the most recent value and (ii) observable inputs from Level 1 or Level 2 (or assets not subject to classification in the fair value hierarchy) were used to value approximately 93% of the assets of the CMRT at December 31, 2017 as noted below.  CMRT assets not subject to classification in the fair value hierarchy consist principally of certain investments measured at net asset value (NAV) per share in accordance with ASC 820-10.  The aggregate fair value of all of the CMRT assets at December 31, 2017, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT are as follows:

 

 

 

December 31,

  

 

 

2017

 

 

 

(In millions)

 

CMRT asset value

$

672.4

  

CMRT assets comprised of:

 

 

 

Assets not subject to fair value hierarchy

 

31

%

Assets subject to fair value hierarchy:

 

 

 

Level 1

 

54

 

Level 2

 

8

  

Level 3

 

7

  

 

 

100

%

CMRT asset mix:

 

 

 

Domestic equities, principally publicly traded

 

33

%

International equities, principally publicly traded

 

25

  

Fixed income securities, principally publicly traded

 

31

  

Privately managed limited partnerships

 

4

  

Hedge funds

 

5

 

Other, primarily cash

 

2

  

 

 

100

%

The composition of our pension plan assets by fair value level at December 31, 2017 and 2018 is shown in the table below.  The amounts shown for plan assets invested in the CMRT include a nominal amount of cash held by our U.S. pension plan which is not part of the plan’s investment in the CMRT.

 

 

 

Fair Value Measurements

 

 

 

Total

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

 

(In thousands)

 

December 31, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

CMRT

 

$

32,360

 

 

$

-

 

 

$

32,360

 

Other

 

 

11,862

 

 

 

11,862

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

44,222

 

 

$

11,862

 

 

$

32,360

 

 

 

 

 

Fair Value Measurements

 

 

 

Total

 

 

Quoted prices

in active

markets

(Level 1)

 

 

Significant

other

observable

inputs

(Level 2)

 

 

Significant

unobservable

inputs

(Level 3)

 

 

Assets measured at NAV

 

 

 

(In thousands)

 

 

 

 

 

December 31, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

11,353

 

 

$

3,423

 

 

$

-

 

 

$

-

 

 

$

7,930

 

Fixed income

 

 

13,856

 

 

 

13,856

 

 

 

-

 

 

 

-

 

 

 

-

 

Cash and other

 

 

3,250

 

 

 

2,347

 

 

 

-

 

 

 

-

 

 

 

903

 

CMRT

 

 

1,663

 

 

 

-

 

 

 

-

 

 

 

1,663

 

 

 

-

 

Other

 

 

10,504

 

 

 

10,504

 

 

 

-

 

 

 

-

 

 

 

-

 

Total

 

$

40,626

 

 

$

30,130

 

 

$

-

 

 

$

1,663

 

 

$

8,833